Force Motors Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 12:58 am

Market Cap	8,826 Cr.
Current Price	6,698
High / Low	10,278/3,333
Stock P/E	18.5
Book Value	1,883
Dividend Yield	0.30 %
ROCE	23.8 %
ROE	18.8 %
Face Value	10.0
PEG Ratio	0.08

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Force Motors Ltd	8,826 Cr.	6,698	10,278/3,333	18.5	1,883	0.30 %	23.8 %	18.8 %	10.0
SML ISUZU Ltd	2,099 Cr.	1,451	2,480/1,225	17.0	228	1.10 %	23.6 %	46.1 %	10.0
Olectra Greentech Ltd	12,090 Cr.	1,473	2,222/1,222	108	120	0.03 %	14.8 %	8.77 %	4.00
Tata Motors Ltd	2,66,532 Cr.	724	1,179/712	7.96	275	0.41 %	20.1 %	49.4 %	2.00
Ashok Leyland Ltd	63,805 Cr.	217	265/158	24.7	35.1	2.28 %	15.0 %	28.4 %	1.00
Industry Average	70,670.40 Cr	2,112.60		35.23	508.22	0.82%	19.46%	30.29%	5.40

All Competitor Stocks of

Quarterly Result

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	938	778	881	971	1,264	1,304	1,490	1,488	1,802	1,692	2,011	1,885	1,941
Expenses	898	792	885	930	1,166	1,250	1,372	1,310	1,581	1,477	1,733	1,640	1,664
Operating Profit	40	-14	-3	41	98	54	118	177	221	215	279	245	277
OPM %	4%	-2%	-0%	4%	8%	4%	8%	12%	12%	13%	14%	13%	14%
Other Income	15	13	8	7	12	5	246	11	9	4	18	15	9
Interest	9	12	13	14	20	17	18	18	16	14	14	9	5
Depreciation	45	50	55	57	61	60	63	63	67	68	68	69	69
Profit before tax	1	-64	-63	-23	30	-18	284	107	147	137	214	182	211
Tax %	195%	-33%	-32%	-29%	36%	-14%	48%	36%	36%	37%	35%	36%	36%
Net Profit	-1	-43	-43	-17	19	-16	147	69	94	85	140	116	135
EPS in Rs	-0.81	-32.51	-32.46	-12.61	14.61	-11.83	111.25	52.06	71.24	64.81	106.45	87.81	102.47

Last Updated: November 6, 2024, 6:44 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	1,973	2,022	2,364	3,025	3,069	3,423	3,652	3,081	1,988	3,240	5,029	6,992	7,389
Expenses	1,919	1,925	2,217	2,751	2,801	3,155	3,378	2,820	1,964	3,190	4,716	6,096	6,430
Operating Profit	54	97	147	274	268	268	275	261	24	50	313	897	959
OPM %	3%	5%	6%	9%	9%	8%	8%	8%	1%	2%	6%	13%	13%
Other Income	44	60	66	71	86	69	82	3	2	52	268	37	46
Interest	8	9	7	5	6	7	15	28	28	41	68	62	53
Depreciation	70	85	81	92	113	129	151	195	174	191	241	267	273
Profit before tax	19	63	125	249	235	201	190	42	-176	-130	272	605	680
Tax %	25%	-24%	19%	28%	23%	27%	25%	-20%	-30%	-30%	51%	36%
Net Profit	14	78	102	179	180	147	143	50	-124	-91	134	388	435
EPS in Rs	10.94	59.08	77.06	135.77	136.68	111.66	108.78	38.08	-93.83	-69.12	101.42	294.54	330.33
Dividend Payout %	27%	5%	6%	7%	7%	9%	9%	26%	-5%	-14%	10%	7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	457.14%	30.77%	75.49%	0.56%	-18.33%	-2.72%	-65.03%	-348.00%	26.61%	247.25%	189.55%
Change in YoY Net Profit Growth (%)	0.00%	-426.37%	44.72%	-74.93%	-18.89%	15.61%	-62.31%	-282.97%	374.61%	220.64%	-57.70%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	13%
5 Years:	14%
3 Years:	52%
TTM:	24%

Compounded Profit Growth
10 Years:	18%
5 Years:	22%
3 Years:	80%
TTM:	156%

Stock Price CAGR
10 Years:	20%
5 Years:	47%
3 Years:	76%
1 Year:	85%

Return on Equity
10 Years:	6%
5 Years:	3%
3 Years:	6%
Last Year:	19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 3:35 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	13	13	13	13	13	13	13	13	13	13	13	13	13
Reserves	1,141	1,215	1,306	1,476	1,654	1,788	1,920	1,952	1,825	1,735	1,862	2,242	2,468
Borrowings	42	20	11	14	199	0	286	310	642	1,069	955	524	229
Other Liabilities	514	527	645	801	738	722	617	823	757	844	1,184	1,635	1,511
Total Liabilities	1,711	1,775	1,975	2,305	2,604	2,523	2,836	3,098	3,238	3,661	4,013	4,415	4,222
Fixed Assets	622	643	638	786	911	948	1,216	1,400	1,224	2,033	2,094	2,031	2,146
CWIP	189	206	240	205	220	369	372	445	725	302	154	171	59
Investments	0	0	0	14	9	10	23	78	100	111	97	91	90
Other Assets	900	925	1,097	1,300	1,463	1,196	1,225	1,175	1,189	1,215	1,668	2,121	1,927
Total Assets	1,711	1,775	1,975	2,305	2,604	2,523	2,836	3,098	3,238	3,661	4,013	4,415	4,222

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	86	116	226	256	471	256	314	409	7	18	532	1,014
Cash from Investing Activity +	-304	-100	-96	-210	-621	-81	-606	-327	-333	-356	-256	-198
Cash from Financing Activity +	-16	-30	-45	-37	180	-223	256	-20	293	375	-207	-509
Net Cash Flow	-234	-14	85	9	30	-47	-35	62	-32	37	68	308

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	12.00	77.00	136.00	260.00	69.00	268.00	-11.00	-49.00	-618.00	49.00	-642.00	373.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	20	24	17	18	14	26	17	20	23	21	14	5
Inventory Days	99	97	87	92	73	68	66	91	136	89	77	83
Days Payable	65	77	87	70	80	81	52	95	108	72	69	61
Cash Conversion Cycle	54	44	17	40	6	13	31	15	52	38	22	27
Working Capital Days	25	24	15	23	53	43	48	11	22	16	20	5
ROCE %		6%	10%	18%	14%	11%	10%	5%	-5%	-3%	5%	24%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	61.63%	61.63%	61.63%	61.63%	61.63%	61.63%	61.63%	61.63%	61.63%	61.63%	61.63%	61.63%
FIIs	2.39%	2.46%	2.60%	2.49%	2.55%	2.71%	2.72%	4.11%	4.94%	4.91%	6.34%	7.78%
DIIs	2.67%	2.54%	3.31%	2.90%	2.20%	2.19%	2.32%	1.48%	1.59%	1.20%	0.86%	1.02%
Public	33.31%	33.37%	32.46%	32.98%	33.62%	33.47%	33.33%	32.77%	31.86%	32.27%	31.16%	29.57%
No. of Shareholders	61,503	61,570	61,036	60,301	58,475	54,912	53,958	50,221	48,086	47,556	47,742	51,909

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Sundaram ELSS Tax Saver Fund	39,000	2.58	34.97	39,000	2024-12-18	0%
Sundaram Equity Savings Fund (Growth Accum)	12,500	1.33	11.21	39,000	2024-12-18	-67.95%
Sundaram Equity Savings Fund (Qtr Div)	12,500	1.33	11.21	39,000	2024-12-18	-67.95%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	294.54	101.43	-69.13	-93.83	38.08
Diluted EPS (Rs.)	294.54	101.43	-69.13	-93.83	38.08
Cash EPS (Rs.)	507.43	298.24	88.48	47.10	191.96
Book Value[Excl.RevalReserv]/Share (Rs.)	1712.71	1424.22	1327.66	1395.85	1492.53
Book Value[Incl.RevalReserv]/Share (Rs.)	1712.71	1424.22	1327.66	1395.85	1492.53
Revenue From Operations / Share (Rs.)	5305.11	3815.61	2458.59	1508.49	2337.27
PBDIT / Share (Rs.)	719.11	297.30	90.30	28.82	236.46
PBIT / Share (Rs.)	516.72	114.64	-54.58	-102.94	88.87
PBT / Share (Rs.)	469.57	220.80	-85.71	-124.36	38.10
Net Profit / Share (Rs.)	305.04	115.58	-56.39	-84.67	44.37
NP After MI And SOA / Share (Rs.)	294.45	101.40	-69.10	-93.80	38.06
PBDIT Margin (%)	13.55	7.79	3.67	1.91	10.11
PBIT Margin (%)	9.74	3.00	-2.21	-6.82	3.80
PBT Margin (%)	8.85	5.78	-3.48	-8.24	1.63
Net Profit Margin (%)	5.74	3.02	-2.29	-5.61	1.89
NP After MI And SOA Margin (%)	5.55	2.65	-2.81	-6.21	1.62
Return on Networth / Equity (%)	17.20	7.12	-5.21	-6.72	2.55
Return on Capital Employeed (%)	24.50	6.03	-3.02	-5.73	5.35
Return On Assets (%)	8.79	3.32	-2.48	-3.81	1.61
Long Term Debt / Equity (X)	0.16	0.31	0.34	0.26	0.09
Total Debt / Equity (X)	0.23	0.50	0.61	0.28	0.11
Asset Turnover Ratio (%)	1.66	1.30	0.93	0.62	1.04
Current Ratio (X)	1.25	1.04	0.80	1.01	1.13
Quick Ratio (X)	0.53	0.48	0.30	0.37	0.52
Inventory Turnover Ratio (X)	5.26	5.37	4.32	2.74	4.06
Dividend Payout Ratio (NP) (%)	3.39	9.86	-7.23	-10.66	26.27
Dividend Payout Ratio (CP) (%)	2.01	3.52	6.59	26.33	5.38
Earning Retention Ratio (%)	96.61	90.14	107.23	110.66	73.73
Cash Earning Retention Ratio (%)	97.99	96.48	93.41	73.67	94.62
Interest Coverage Ratio (X)	15.25	5.73	2.90	1.35	11.19
Interest Coverage Ratio (Post Tax) (X)	7.47	0.18	-0.81	-2.95	4.50
Enterprise Value (Cr.)	9625.28	2352.96	2346.33	2030.17	1137.32
EV / Net Operating Revenue (X)	1.38	0.46	0.72	1.02	0.36
EV / EBITDA (X)	10.16	6.00	19.72	53.44	3.65
MarketCap / Net Operating Revenue (X)	1.37	0.30	0.41	0.77	0.31
Retention Ratios (%)	96.60	90.13	107.23	110.66	73.72
Price / BV (X)	4.23	0.81	0.77	0.83	0.49
Price / Net Operating Revenue (X)	1.37	0.30	0.41	0.77	0.31
EarningsYield	0.04	0.08	-0.06	-0.08	0.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 6,568.72

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Overvalued by 1.93% compared to the current share price 6,698.00

Intrinsic Value of as of December 21, 2024 is: 22,038.97

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Undervalued by 229.04% compared to the current share price 6,698.00

Last 5 Year EPS CAGR: 235.51%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of 25.42, which is a positive sign. The company has higher reserves (1,737.23 cr) compared to borrowings (330.85 cr), indicating strong financial stability. The company has shown consistent growth in sales (3.23 cr) and profit (182.69 cr) over the years.	The stock has a low average ROCE of 7.92%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 29.92, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 5.74%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 24.5% (Industry Average ROCE: 19.46%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 17.2% (Industry Average ROE: 30.29%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 7.47
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.53
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 18.5 (Industry average Stock P/E: 35.23)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.23
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Force Motors Ltd. is a Public Limited Listed company incorporated on 08/09/1958 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L34102PN1958PLC011172 and registration number is 011172. Currently Company is involved in the business activities of Manufacture of motor vehicle engines. Company’s Total Operating Revenue is Rs. 3240.04 Cr. and Equity Capital is Rs. 13.18 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Auto - LCVs/HCVs	Mumbai-Pune Road, Akurdi, Pune Maharashtra 411035	compliance-officer@forcemotors.com http://www.forcemotors.com

Management
Name	Position Held
Mr. Abhaykumar Firodia	Chairman
Mr. Prasan Firodia	Managing Director
Mr. Prashant V Inamdar	Executive Director - Operations
Ms. Sonia Prashar	Director
Lt. Gen. (Retd.) D B Shekatkar	Director
Mr. Vallabh Roopchand Bhanshali	Director
Mr. Mukesh Mangalbhai Patel	Director
Mr. Arvind Mahajan	Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹6568.72, which is 1.93% lower than the current market price of ₹6,698.00. The stock has a market capitalization of 8,826 Cr. and recorded a high/low of 10,278/3,333 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹2,468 Cr and total liabilities of ₹4,222 Cr.

What is the Market Cap of ?

The Market Cap of is 8,826 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 6,698.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 10,278/3,333.

What is the Stock P/E of ?

The Stock P/E of is 18.5.

What is the Book Value of ?

The Book Value of is 1,883.

What is the Dividend Yield of ?

The Dividend Yield of is 0.30 %.

What is the ROCE of ?

The ROCE of is 23.8 %.

What is the ROE of ?

The ROE of is 18.8 %.

What is the Face Value of ?

The Face Value of is 10.0.